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Why the Market Dipped But FedEx (FDX) Gained Today

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FedEx (FDX - Free Report) closed the latest trading day at $249.58, indicating a +1.82% change from the previous session's end. The stock outpaced the S&P 500's daily loss of 0.6%. Meanwhile, the Dow experienced a drop of 0.86%, and the technology-dominated Nasdaq saw a decrease of 1.08%.

Shares of the package delivery company witnessed a loss of 5.99% over the previous month, trailing the performance of the Transportation sector with its loss of 3.3% and the S&P 500's gain of 3.15%.

The upcoming earnings release of FedEx will be of great interest to investors. The company's earnings report is expected on June 25, 2024. The company is forecasted to report an EPS of $5.31, showcasing a 7.49% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $22.14 billion, showing a 0.97% escalation compared to the year-ago quarter.

FDX's full-year Zacks Consensus Estimates are calling for earnings of $17.68 per share and revenue of $87.77 billion. These results would represent year-over-year changes of +18.18% and -2.6%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for FedEx. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.08% lower. FedEx is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note FedEx's current valuation metrics, including its Forward P/E ratio of 13.86. Its industry sports an average Forward P/E of 16.99, so one might conclude that FedEx is trading at a discount comparatively.

We can additionally observe that FDX currently boasts a PEG ratio of 1.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Transportation - Air Freight and Cargo industry had an average PEG ratio of 1.47 as trading concluded yesterday.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 97, positioning it in the top 39% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow FDX in the coming trading sessions, be sure to utilize Zacks.com.


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